RADIOOctober 17, 2022

Glenn: Economy is like the TITANIC. Time to get on a lifeboat.

Glenn says our economy today is like the Titanic — saving it before massive destruction is done might not be an option any longer. And, unfortunately, financial expert and author of ‘The War On Small Business,’ Carol Roth, agrees. She tells Glenn what SHE would do differently if she was running the Federal Reserve: ’I [would] slow the Titanic down so we can get people into the lifeboats.’

Transcript

Below is a rush transcript that may contain errors

GLENN: Carol Roth is in town. We have a -- kind of a financial kind of meeting. Or something today.

And you're in town for that. And welcome as always, Carol.

CAROL: Thanks, it's fun to be in studio, with you.

GLENN: So, Carol, I just said to Senator Johnson from Wisconsin.

That I feel like we're on the Titanic, and now we've hit the iceberg at full speed. And I'm looking for a band to stop playing so people can go, oh, wait. What just happened? And it's time to get into the lifeboats. Because this thing -- we have to save what we can. And the people we can. Because we're going to have a lot of rebuilding to do.

CAROL: Yeah. And it's the people who put us on course to hit the iceberg.

GLENN: Wait. Wait. You don't agree with my analogy, do you?

CAROL: No. I do agree. I'm very, very sorry. I know, you want me to tell you that everything is going to be okay.

GLENN: Yeah. Blame the iceberg, we haven't --

CAROL: We'll be on a mega yacht, instead of the Titanic. But it's just not the case. It is these people who said, no. That iceberg is not there. No. We can totally maneuver our way around it. These are the people who say, no, no, no. Yeah. So it was there. And maybe we hit it.

But, you know, that was some other reason. It wasn't actually there when we saw it. But now we've got all these great ideas on how to fix the economy.

GLENN: Oh, my gosh. And none of them are good ideas. Let me ask you this. Let's say you're the head of the Treasury. Or head of the fed.

CAROL: Lord, help everyone. But yes.

GLENN: I think we would be better off.

CAROL: Oh, you would be. You would be.

GLENN: Even if it was just me. It would be like --

CAROL: Some guy off the street.

GLENN: Anybody off the street. You, I don't know what your name is, you're now the head of the fed.

If you were the head of the fed, this is the iceberg part, how do you stop this from going down?

Aren't -- because you have to raise interest rates, traditionally, to pull money back in. But these interest rates would have to be 30 percent easy. Don't you agree, to pull this kind of money back in? We were at 20 at Jimmy Carter.

CAROL: Yeah, we'll get to that in a second. First of all, if I were fed chair, I would blow up the fed powers. And say, we're going to put myself out of a job, at some point in time. But in terms of the problem at hand --

GLENN: So wait. Wait. Let me get this. So the audience understands. To suck -- inflation goes down, when you suck money back out of the system.

That's the theory. And that's the way it always works. Hang on. I know what you're thinking. And the other problem is, you can only make interest rates, go so high, before it sucks the money out, that is needed to run the economy.

So a half the country is saying, we have to our interest rates. Other half of the country, is saying, no. We have to lower the interest rates. I don't know what to do. Except just freeze.

CAROL: So let me put this in layman's terms. You're talking about this battle between inflation and putting us into a very deep recession. Not that we're not already in a recession. Which some of the people like to pretend that we're not. But a very deep recession. And some of those things are at odds with each other.

GLENN: Borderline depression. I mean depression is really kind of defined by the unemployment being very, very high. Over 25 percent.

CAROL: And duration. The length of -- how deep and how long this goes. But there's another factor in here, which is because we are the world's reserve currency, it's something called the Triffin dilemma. So not only are we domestically at odds, inflation versus recession.

But on a global -- from a global standpoint, you're at odds. Do you make decisions for the benefit of the US? Which I'm not sure that we can. But let's just pretend that maybe we can.

Or for the world. Because the world is on the precipice of a massive global recession, that could do cause all kinds of very reverberations here.

So this is the massive puzzle that the central planners, again, have created. Because they thought, okay. We can figure this out. But they don't realize, they're not smart enough to figure out all these parts. So as fed chair, I need to slow the Titanic down, so we can get people -- we talked about online, into the lifeboats, versus not crashing into the iceberg. Because that's not possible at this point in time.

GLENN: It's not possible to save the Titanic?

CAROL: I personally don't think that's possible. Everybody is like, oh, there's a very narrow path. The path is as narrow as one of my hairs. There's no narrow path, so let's just be honest about it.

GLENN: Right. The time to do something was really before 2008. Once we went down the path of bailing everybody out, this is the inevitable outcome. And everybody at the fed and all the experts and all the banking people, said, no, no, no. You don't understand. And I kept saying to them, hmm. I do understand. I don't think you're either telling the truth to yourself, or you're -- you're -- or you're just a crazy man. Because they're -- you can't do this, at the numbers that we're doing it.

CAROL: Yeah. And the thing is, that not only have they not done what they did then. They shouldn't have kept in place, for as long as they have. And they shouldn't have doubled down. That's the problem. Is we keep having these opportunities. Yes, we've made mistakes, and we're going to change course. But instead, everyone goes, no, I think this is fine. We're going to continue to march down. Or I'm not seeing the problem in the way that other people are anticipating it. So since you're not recognizing it, we have some more room to just continue on, until they wake up, and realize, it's a problem. Once you wake up and realize that the problem is there, then it becomes too late. And we're in the situation that we're in today.

GLENN: So Monday, I did a monologue on Credit Suisse, and I said, you're going to see in two years. Because the fed doesn't have to tell you anything in two years. But I guarantee you, we're sending over our money over to Credit Suisse right now, to do basically what we did in 2008. Save the baggage that's too big to fail. Well, I don't know why they released this information. But last night, I'm reading, we sent three -- billion? How much did we say?

CAROL: I don't know, but I doubt it was 3 trillion.

GLENN: Yeah. I'll look that up. Could you look that up?

STU: 3 trillion --

CAROL: That would be bad.

GLENN: It's a staggering -- it's a staggering amount.

CAROL: Let me tell you why they did that: Is because the Suisse National Bank said that Credit Suisse is a systemically important bank. So, of course, they are too big to fail. You know, we can't bail out the little guys. We have to make sure the big cronies are taken care of. So, of course, somebody was going to come to the rescue. And when you say somebody, it's always the US. And it's not the US. It's you and you and you. It's literally us because it's our money, or the printing money, which devalues our money.

GLENN: So isn't Europe now in the place, or soon to be in the place that we were at in 2008?

CAROL: So it's for a different reason.

GLENN: Right. Right. Right. Right.

CAROL: But, again, this goes back to the fed. So let's tie this back in a little bow. Because we have a dollar that is strong against other currencies. It's not strong when you go to the grocery store.

But it's strong against these other currencies out there. I like to call it the skinniest kid at fat camp.

It's not great, but it's the best out of all of them. And because of the energy situation, that they've all created.

They're dependent on importing energy. Energy, and to some extent, food is priced in dollars, which means that these countries need to access dollars in order to pay for these things. So they only have so many choices.

It means they either continue to devalue their currency. They're going too have to spend more and more of their currency to buy dollars. Or they sell dollar denominated assets like treasuries, in order to get the dollars to pay. So this is a vicious cycle, when they do that. Then the yields go up. The dollar strengthens, and we end up in this crazy cycle again. And this is why it's so complicated, the fed's decision isn't just inflation versus, you know, a deeper recession here in the US. It's literally, potentially creating a global currency crisis. It's potentially creating a liquidity in the Treasury market, and a crisis there. It's potentially, you know, all risk assets, could end up just, you know, being sold in a massive fire sale. I mean, they have to think through all of those implications. And that's why, if I were fed chair right now, where we started this, I would have to pause. Because I don't think that the fed has the tools to combat inflation since their supply-generated anyway. They can't print oil. They can't print labor. They don't have the tools. So all they can do is crash demand, and if they do, they take the whole world down with them.

GLENN: Okay. Well, I think I'm going home now. All right. More in just a second with Carol Roth. By the way, you can get her newsletter and the things that she writes, at Blaze. TheBlaze.com. You'll see a lot of her articles. And at your website, as well.

CarolRoth.com/Glenn. Right?

CAROL: That's actually a new project coming up that you know about. They can sign up to find out about that there. It will help them battle their way back with wealth. So CarolRoth.com/Glenn.

GLENN: So you're going to announce that today?

CAROL: I'm not announcing it. But if they get on that mailing list, they'll be the first one to know.

GLENN: This is a really good thing. All right.

Let me tell you about gold. I actually saw a guy who was traditionally against holding gold. And I don't remember who it was. It was a guy traditionally against it. And he said, now it's really the time. Now is the time. Because all assets, all assets are going to go way down. He predicted. Way down. And even if gold goes dune. It will be like the skinniest kid at fat camp. You know what I mean? And he said, eventually, gold always resets everything. Do you agree with that?

CAROL: Yeah. We can talk about this more. But if you think about what we just said, the fed eventually having to go back to continue printing. The central banks going back to printing. Like we're seeing in the Bank of England. You know, this is a long-term trend. You saw something out of Saudi Arabia. That they're opening a gold refinery. There's a reason for that. So just in terms of the tenor of the global economy, U.S. dollar's reserve currency, and all these machinations going on with it. You know, the one thing that everybody can kind of agree on is gold.

GLENN: You know, it's amazing too, because if you think the government can say, we're just making a different dollar. We're just making a digital dollar. It's going to be completely different. At that point, no one is going to have any credibility. You're going to have to show me what's that worth. Show it to me. There will be no faith in the good name and credit of the United States. Anyway, I want you to call Goldline right now.

They've got a a really good special outgoing. The legal tender bar. This is goodly pieces, I actually helped design this. And they had it made by the Canadian mint. It is little, teeny gold bars that are spendable if you will. You can keep it in your wallet, and you can get wherever you needed to do with those. And it's much more reasonable to use.

Also, if you do this. You can get a free Benjamin Franklin copper round. Free silver mind your business bar. And a free silver Mapleflex bar, which is exactly like the gold bar. That I was telling you about a minute ago. Inventory on these. They sell out quickly. Don't wait. Call 866GOLDLINE. 866GOLDLINE or goldline.com. Ten-second station ID.
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Can you explain one thing?

I saw an article out of Europe. And it said that because there are no investors. Because of ESG.

CAROL: Right.

GLENN: There's no investors in exploring for oil. Et cetera, et cetera.

And the fact that we are headed towards price destruction.

Meaning, nobody can afford to do anything.

So nobody is going to be using gas.

And you're going to be staying home. So the price of gas, is going to fall through the floor, they think. Then the banks will have. Or any investors will have a call, on their investment. And they won't have the money, to be able to do it. So a they're stuck in this same kind of trap. Where it's this vicious circle. Is that true? Is that right?

CAROL: So there is a case to be made, that, you know, as we -- kind of go into a global recession.

Like a very deep global recession that there will be demand destruction.

But you have to remember, that we just had OPEC plus, decide to cut production to a million barrels per day. So -- and, you know, China is still kind of getting back and running. You know, in terms of capacity. So I don't think that oil and gas are going to go back up to the levels that, you know, perhaps we saw earlier this year. But the idea that it's all going to come crashing down. Yes.

Europe is stockpiled on gas. But it's a three-month stockpile. Like, what happens after that? This issue that we have with energy. This isn't like a month-long, or winter long issue. And all of a sudden, we're going to come out the other side, and everything is going to be roses.

There's massive underinvestment that will affect us for years.

GLENN: So it's not just that you can turn this spigot back on. You know, I know, when you think of these big oil rigs, that are out in the middle of the gulf. Those things are made here. A lot of them.

But they have specialized parts that like, one company makes. Those things are on leases for ten years, at least.

So if it pulls up here, and goes some other place, South America. That's leased. And you don't just build an oil rig like that, overnight.

We're talking years of restarting.

CAROL: This sounds really familiar. It sounds like in 2020, when a bunch of people said, wait. You can't just turn on a third of the economy. And turn it back on whenever you want. And there's going to be absolutely no dislocation. Huh. That's weird. It's the same thing here. You're losing -- the parts manufacture. You're losing, in the case of nuclear -- knowledge base. You know, specialized expertise. You cannot just flip the switch back on. And there's no meaningful, sort of rush towards investment. Because all these companies believe that, you know, whoever the next regime is, even if there's a friendly one in between. That they're just going to double down on these bad policies. So why would they make a ten-year, a 15-year, multi-billion dollar investment. When people are coming out and saying, we're coming after you. You know, show me the incentive. I will show you the outcome, that's Charlie Munger. And it's for every single thing. In terms of energy, this is not just the next few months. This is a multi -- multi year disaster, with massive human suffering. I mean, we're talking about already in Europe. Just the implications, not just on heating your homes. But on the food sector. Bakeries. Dairy.

Companies that massively use energy. They're not able to produce, at the levels, that they could, because the energy --

GLENN: Farms.

CAROL: Yeah. Fertilizer. This is what happened to Sri Lanka, right?

GLENN: This is craziness. It is craziness. There is such a -- and I can only -- you know, it's Malthusian.

You have to hate humankind, to go down this road. Because it's so clear, what the ramifications are.

And if you stop right now, and you go, okay. Okay. Okay. Okay.

All right. I got it. That's one thing. But to stay singly focused on this, and continue, while people are going to face starvation and freezing to death, there's something deeply, deeply wrong with you.

CAROL: So we've talked about this. This is what the fed did. They stayed with that myopia. Same thing with covid. Now we have it with energy.

EXCLUSIVE: Chip Roy Explains His FIERY Rejection of Spending Bill

According to the media, there’s a big fight going on between Republicans over the House’s new slimmed-down continuing resolution spending bill. Some, including President-elect Donald Trump, wanted the bill to pass. But others, like Texas Representative Chip Roy, argued that it still wasn’t ready. However, is the Republican “unity coalition” really crumbling, like the media claims? Rep. Chip Roy joins Glenn to explain what’s really going on. He argues that he IS trying to give Trump and DOGE a 100-day “runway” to fix the country. But he makes the case that, by increasing the debt ceiling by $5 trillion without agreeing on other cuts, this bill gives bad actors the ability to be an “obstacle” to Trump’s agenda further down the line. Plus, he reveals to Glenn that he believes some of these bad actors LEAKED false information about his stance to Mar-a-Lago.

Transcript

Below is a rush transcript that may contain errors

GLENN:

I think we have a great opportunity today. To show you how to have a -- tough conversation, with friends, friends. Where you deeply disagree on something.

But you know that their intent is good. They know my intent is good. Or our intent is good.

And we actually have the same end goal, but we disagree on the path. And we're going to walk away friends.

Chip Roy is joining us today. And, Chip, I love you. And I always will. And I agree with your, we've got to cut spending. We have to. But Liz Wheeler is with me. And we've been talking about it all morning. It's the -- the -- the -- the system of DOGE and Trump, the call-out to the world, in saying, you've got to surrender the Capitol. You know, the bad guys are in and about to take all the money.

Surround, and tell them, come out with your hands up. And that happened. And we scored a massive win, in an entirely new way.

Ask then you stood on principle, one we both agree with.

And it failed!

And so here's -- here's what Liz and I were talking about. Here's what we want to say to you.

And then get your response.

LIZ: Hi, Congressman Roy, this is the way I see it. I want your take on it. I love you. I think you're one of the best members of Congress. I disagree with you on the process that's happening. And I think that is the difference. The process. We elected Donald Trump to be a disruptor. Because Republican members of Congress for decades have been telling they're fiscal conservatives. They want to decrease the debt SEAL. It hasn't happened.

It hasn't -- it hasn't been done. And so Donald Trump comes in with Elon Musk, and uses this DOGE process to first identify these pieces of garbage in the first 1500-page bill. And take those things to the people. We took them to members of Congress. Congress said, okay. We'll listen to you.

So that new process was very effective.

And my question to you is: Once that process was proved to be effective. Which I think is exciting and wonderful.

How do we bridge this divide, with you, to say, okay.

Let's put some faith in this new process. And trust Elon Musk and Donald Trump and the Dow Jones process, to eventually address the debt ceiling, but get this done right now?

GLENN: And not blind trust. Chip.

CHIP: So appreciate you guys. Appreciate being on the show. Particular order. I have to go through a couple of things.

GLENN: Yep.

CHIP: Number one, it's important to remember that my job and my duty is to the Constitution, to God, and the people I represent. I told them, when I came to Washington, I would not -- I would not let the credit card and the debt ceiling and the borrowing of the United States without the spending restraints necessary to offset it.

GLENN: Okay.

CHIP: Right now, all we have are promises and ideas and notions. What I know, that neither of you respectfully no, and that none of your listeners respectfully no are the people that are in the room, that I was in with yesterday. And the day before, who are recalcitrant.

And do not want to do the spending cuts that we need to do.

That I believe the president and the DOGE guys. And everybody want to do.

My job, is to force that through the meat grinder. To demand that we do our damn job. Okay?

GLENN: Okay. So hang on. Okay. So wait. Wait. You're right. You're right. You're right. Go ahead.

CHIP: Number thee, when we were going through the bill, I'm glad the bill dropped from 1,550 pages to 116 pages. Three-quarters of Twitter or X or whatever you want to call it, have been out there spreading false facts that we supported a bad bill and didn't like the better bill.

That's not true. But let's be Lear. The 1400 pages that were cut out. It's a panacea.

There were some good stuff in there. There were some bad stuff in there. There was a lot of disinformation.

There wasn't a $70,000 pay raise. There was a 3,000-dollar pay raise.

I didn't support any pay raise. I didn't support a lot of the stuff in there.

But there's a lot of misinformation. And here's the thing: The 116 pages that were left, and I opposed violently the first bill. I was leading the charge on fighting and killing the first bill.

GLENN: And I love you.

LIZ: The second bill for 116 pages. Turned off -- turned off the pay go requirement. That we slash 1.7 trillion automatically.

And added a 5 trillion that are increase.

My view was, I could not support that, without a clear understanding of what cuts we would get, in mandatory spending next year. And undo any of the Inflation Reduction Act.

The undoing of the student loans. The undoing of the crap with the food stamps.

And everything else. I yield back.

GLENN: Okay. I yield back.

Chip, you're not in a hostile room. We love you. And we agree with your end goals. It's our end goal too. We didn't make that promise that you made to the people that voted for you. So we have more wiggle room here.

But you say -- I think our big difference is, you say, I know the guys in the room.

You're right. You do. And we -- we ceded that earlier today on the show.

You are -- one of us is wrong on trust.

I don't trust any of the weasels in Washington.

But I think Donald Trump and Elon Musk and Vivek Ramaswamy have earned enough trust, to get a grace period, here for the first -- maybe the first year.

Or at least six months.

To turn the economy around, and also reduce the size of the government.

And totally flip this thing.

And I know, as somebody who is -- you know, run a company, mainly into a ground. But run a company, and have to switch it, in the middle, and totally reshuffle. That -- that actually costs money, while you're doing it, to bridge the gap.

Because you have to fill up holes while you're filling in the gap.

You don't trust the people in the room. Neither do we.

But we do trust the system that worked on Wednesday with DOGE and Donald Trump.

Where do we disagree?

Can you give them --

CHIP: We don't disagree. And yesterday morning, I was making that precise argument in a room full of conservatives and then a follow-up room with people who will call it, less conservatives.

GLENN: Republican. Yes.

CHIP: And so we were making this argument. And then someone infamously. Something leaked out of the room, somehow out to Mar-a-Lago. That I was being resistant. Because I was negotiating trying to get the agreement to achieve the objective that you just said. I was trying to get, okay. In fact, yesterday morning, I made the argument to a group of conservatives. We need to give the president runway. We need to give him his first 100 days. We need to appreciate JD, and Vivek, and all the people -- and everybody involved. For the president to achieve the objective.

But to get there. We have to make sure that the guys in the room, that are an obstacle to that, don't have the ability to block it.

Because information flow matters. And when those guys tell the president, they can't achieve X.

Then the president will not achieve X. Our job was to force and demand, guys, we need actual understanding of what the cuts will be.

And because otherwise, we're asking us to accept a 5 trillion-dollar limit in our credit card increase. In exchange for nothing!

Literally, in exchange for nothing, but -- but hope.

So our job was to force that change.

Unfortunately, while I was trying to make the argument that we needed something in order to get the votes, someone leaked that down to Mar-a-Lago, and the president reacted.

But now I have to now manage that.

GLENN: Right. I know. I know.

CHIP: They're trying to enforce change in town.

GLENN: So hang on.

We have to leave this. Because I'm going to run against the clock.

I could talk to you all day about this. You were in a meeting this morning about J.D. Vance. Can you tell us anything about that meeting?

CHIP: That meeting happened, because despite what happened yesterday, I'm trying to get this done. Last night, talking to JD, we worked to get this meeting done. We had some good progress this morning.

But there still remains people concerned about spending. That we can work out, what agreement we can reach. On what spending cuts. We can actually get next year, in exchange for giving the vote on a debt ceiling increase.

So it remains fluid. Progress was made. But we have to keep working on it.

And I left that meeting to talk to you. Soil get an update in a minute.

GLENN: Thank you for that, by the way.

I hear there is a new bill that may be coming today.

Is that the one you're talking about?

Or is this another bill that could be another nightmare?

CHIP: Despite other people leaking crap, I refused. I can't say, because it's not been decided by the speaker.

And it's not right to talk about things they're talking about in private meetings.

GLENN: Yeah, but it's -- it's this speaker. I mean, is he really the speaker anymore, Chip, really?

CHIP: We need to hear what bill we need to get forward. And I can't talk about the private meetings. But, look, I'm going to keep fighting for what I promised people that I represent.

I'm going to fight to cut spending. I am going to represent article one.

I'm going to support the president's agenda, but we've got to do that together.

GLENN: Okay.

Chip, thank you.

I think we can -- I think we agree, but I await to see what that means to you. Because we may just have to agree to disagree on this.

But I love you. And I still want you to replace Cornyn.

CHIP: The short version is, for inflation's sake, we cannot increase the debt ceiling $5 trillion without knowing what we're getting for it.

And I don't think anybody should disagree with that.

GLENN: But you don't disagree that Elon Musk and Trump and Vivek are serious about gutting the system.

CHIP: I believe that is their objective. I believe there are obstacles to that objective. And I need to know the sincerity of how we deal with those obstacles, both structural, and human. And we have to figure that out. And that's my job.

America's Favorite Villain Is Ready for Nuclear Fallout. Are You? | Glenn TV | Ep 401

In this episode of Glenn TV — a theatrical how-to guide to survive the breakdown of society after a nuclear attack, according to the new movie “Homestead” from Angel Studios. Glenn Beck interviews the movie’s star and executive producer, Neal McDonough, who plays the head of a family trying to survive as society is breaking down in a postapocalyptic world. You’ve probably seen Neal in everything from the hit TV shows “Yellowstone,” “Suits,” and “Justified” to movies like “Captain America,” “Minority Report,” and the groundbreaking mini-series “Band of Brothers.” Glenn asks Neal what it’s like to play a villain so often, how TV and movies are changing, and how he survived Hollywood as a devoted Christian and husband who refuses to do onscreen kissing scenes with any of his female co-stars. They also discuss his battle with alcoholism, what it’s like working the legends like Sylvester Stallone and Kevin Costner, and the cultural craving for Western cinema. Note: Angel Studios is a sponsor of “The Glenn Beck Program.” Get your tickets for “Homestead” at https://Angel.com/Beck.